If the MPC = 0

question 42

Multiple Choice

If the MPC = 0.9, then ignoring any multiplier effect, an increase in disposable income causes consumption expenditure to

• A) rise by more than the full increase in income.
• B) rise by the full increase in income.
• C) fall, as increases in income will increase saving.
• D) rise by less than the full increase in income.

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Definitions:

Sequentially

Following a logical or arranged order, typically in a series or sequence.

Conditional Discrimination

A situation in which the availability of reinforcement to a particular stimulus depends upon the presence of a second stimulus.

Occasion-Setting Properties

Stimuli or contexts that signal the availability of reinforcement or punishment, influencing how an organism responds to other stimuli.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, begins to elicit a conditioned response.